Bay Street East Reconstruction | Town of The Blue Mountains, ON

On this page:
1. Project Updates
2. Staff Reports & Council Decisions
3. Public Consultation
4. Map of Project Area
5. Quarterly Progress Reports
6. Frequently Asked Questions

The 2021 Town Budget included funding for a capital project intended to make upgrades to the Craigleith Main Sewage Lift Station. In May of 2022, Town Council approved a motion to increase the scope of the project to include upgrades to the Mill Street Sewage Lift Station and installation of an additional sanitary forcemain along Bay Street from Mill Street to Grey Street.

The Town’s Asset Management Plan indicates that the underground infrastructure on Bay Street in this location is in poor to very poor condition and is approaching the end of its useful life. The existing sanitary sewer and watermain are both made of asbestos cement, and both experience significant leakage issues. The installation of the secondary forcemain will involve road excavation that is likely to result in many more leaks as the ground shifts and settles. Considering that Bay Street from Mill Street to Grey Street will need to be significantly disturbed for the installation of the forcemain, this provides a great opportunity to reconstruct the entire road. This will ensure that the watermain, sewers and stormwater systems are adequate for the next 50-75 years. Addressing leaking watermains and sewers reduces the burden on both the water and wastewater systems, freeing up needed capacity and allowing more connections to current infrastructure.

Why Now?
The existing watermain and gravity sewer are approaching end of life, and a secondary forcemain is required between the Mill Street Sewage Pumping Station and the Thornbury Wastewater Treatment Plant to handle planned growth in the community.

Project Updates

February 26, 2026 - Workplan for start of March

For the week of March 2, Arnott Construction will be continuing with the installation of the new sanitary sewer, watermain and storm sewer between Mill Street and McAuley Street. Under the supervision of a certified Arborist, the contractor will also be completing trimming of tree roots located within the excavation limits to minimize the impact on trees that are to be retained. This trimming work is expected to continue over the next few weeks. EPCOR will also be continuing with utility pole relocation between Elgin Street and Grey Street.

February 13, 2026 - Utility pole relocations begin between Elgin and Grey
Installation of the new sanitary sewer will continue between Mill Street and McAuley Street following Family Day. Arnott will also be continuing to stockpile gravel in Bayview Park, and will have lane restrictions in effect around 93 and 95 Bay Street as they install a new check valve.
EPCOR will also begin the process of relocating utility poles between Elgin Street and Grey Street. This will include staging, laying out and drilling the new poles. Barriers will be placed to guard the new pole locations and vehicles will have to yield to oncoming traffic in these areas. The road will be signed for Local Traffic Only.
February 6, 2026 - Sanitary and stormwater installation continues
Arnott Construction is planning to continue work on the new sanitary sewer and stormwater sewer between Mill Street and McAuley Street next week. The will continue with installation of the first underground structures, and will begin installation of the sanitary sewer pipe. They also plan to begin stockpiling gravel in a portion of Bayview Park which will allow them to limit trucking from offsite while the Town's spring load restrictions are in effect.
The Town has also received an updated draft of the Arborist Report along with Tree Protection Plan Detail and Inventory Drawings. These documents can be found at the link below.
View Documents
February 2, 2026 - Sanitary forcemain failure
Town contractors reported a sanitary forcemain failure that resulted in wastewater being released to land at the corner of Bay Street and McAuley Street. Town staff immediately stopped pumping operations and initiated repair and remediation of the affected area. The sewage spill has been reported to the Ministry of the Environment, Conservation and Parks and the Grey Bruce Public Health Unit. To safely complete repairs and the required clean-up, the intersection of Bay Street and McAuley Street will be fully closed to traffic. Detours and appropriate traffic control measures will be implemented.
More Information
January 26, 2026 - Work beginning on sanitary and storm sewers
Arnott Construction is planning to shift efforts this week to the installation of the new sanitary sewer and storm sewer between Mill Street and McAuley Street. Materials for the sanitary and storm sewers have been arriving on site, and work will begin with the installation of the first pre-cast concrete structures as weather and conditions permit.
January 16, 2026 - Forcemain connections at Mill and McAuley
Arnott Construction has completed cleaning, flushing and pressure testing the new forcemain between Mill and McAuley. Next week they plan to complete the final tie-ins of the forcemain at the Mill Street Sewage Pumping Station and the McAuley Street intersection. The intersection of Bay Street and McAuley is expected to be fully reopened on Tuesday, January 20. Arnott will also be conducting their annual Health & Safety Training next week, so will have a reduced presence on site following completion of the connections.
January 9, 2026 - Watermain repair and forcemain installation
Earlier this afternoon, Arnott Construction discovered a minor watermain leak east of the intersection of McAuley Street and Bay Street. The intersection has been closed to all traffic while they complete the repair. Residents in the area of McAuley Street, Huron Street, Elgin Street and Bay Street between McAuley and Elgin may experience pressure fluctuations and temporary water outages until the repair is complete. Town staff are currently going door-to-door to provide notice to impacted homes. If you notice any water cloudiness or discolouration, please run your taps until clarity is restored. There is no threat to drinking water quality as a result of this leak.
The intersection of McAuley and Bay will remain closed next week as Arnott completes cleaning, flushing, pressure testing and connecting the new forcemain segment between Mill and McAuley. Tree and stump removals will also be ongoing throughout the project area next week.
December 19, 2025 - Holiday construction pause
Arnott Construction will be concluding activity for the year at the end of day on Friday, December 19. Work will resume the week of January 5, 2026. During the holiday shutdown, access for residents of Bay Street between Mill and McAuley will be maintained from the McAuley intersection. Arnott will be continuing with snow removal on this section of road throughout the holidays. When construction resumes in the new year, work will continue on the forcemain between Mill and McAuley. Remaining tree removals for the forcemain and hydro relocation will also be completed in the new year.
The Town has also received an updated draft of the Arborist Report along with Tree Protection Plan Detail and Inventory Drawings. These documents can be found at the link below.
View Documents
December 12, 2025 - Continuation of forcemain installation and service impacts
Arnott Construction plans to continue installation of the forcemain between Mill Street and McAuley Street next week. Work is expected to progress into the intersection of Bay Street and McAuley Street on Monday, December 15. This intersection will be closed December 15-16 to allow the work to be completed. Tree removals are also expected to be ongoing throughout the project area during the week. Additionally, there will be a temporary water service interruption on Monday and Tuesday while the work is being completed. This interruption will impact the following properties.
- 69-111 Bay Street East
- 47-67 McAuley Street North
- 94-96 Huron Street
- 40 Elgin Street North
Physical notices have been delivered to these properties, and a copy of that notice is linked below for reference.
View Notice
December 10, 2025 - Tree removal and traffic control update
Arnott's subcontractor for tree removals has been delayed this week, and now expects to start work on Thursday, December 11 at the earliest. This delay is not expected to impact the overall project schedule as work on the forcemain has been progressing between Mill Street and McAuley Street. As Arnott moves down Bay Street, they will be extending the Local Traffic Only zone out to the intersection of Bay Street and Elgin Street. Please pay attention and obey all posted signage in the area.
December 5, 2025 - Forcemain installation and updated timeline for tree removals
Arnott Construction plans to begin installation of the new sanitary forcemain next week. They will begin at the Mill Street Sewage Pumping Station and work towards the intersection of McAuley Street. The intersection of McAuley Street and Bay Street is expected to be closed from December 10-12 to allow for the forcemain installation. The section of Bay Street between Elgin and McAuley will be signed for local traffic only. Tree removals were delayed this week, and are now expected to begin on Monday, December 8. Finally, the Town has finalized a plan for winter snow removal within the project area. Please see the map linked below. Any issues with snow removal by the Town or Bay Valley Services can be submitted through the Town's Online Service Request form.
View Map
November 28, 2025 - Upcoming workplan
In the week ahead, Arnott will continue their focus on underground utilities between Mill Street and McAuley Street, including stormwater and sanitary sewer. Tree removals are also scheduled to begin throughout the project area as of Thursday, December 4. Finally, positions will be laid out for the installation of temporary hydro poles on the south side of Bay Street between Elgin and Grey.
November 25, 2025 - Rogers Communications work
Rogers Communications has informed the Town that a contractor will be completing work overnight tonight on their network lines located between Mill Street and McAuley Street. This is likely to result in temporary network outages while the work is being completed. Questions regarding this work should be sent directly to Rogers through their support channels.
Contact Rogers
November 25, 2025 - Temporary water outage details
Arnott Construction will be completing work beginning Wednesday, November 26 that will require temporary water service interruptions. Work will occur daily between 7:00 a.m. and 6:00 p.m. and is expected to be completed by end of day on Friday, November 28. During these times, water service may be unavailable or there will be reduced pressure. It's recommended that impacted properties plan accordingly by storing sufficient water for their daily needs prior to the scheduled interruptions. The temporary outages are expected to impact the following properties:
- 10-111 Bay Street East
- 24-64 Cottage Avenue
- 42-47 Mill Street
Physical notice has also been hand-delivered to these properties.
View Notice
November 21, 2025 - Temporary sewer bypass and watermain connections
Arnott Construction plans to continue with the deep sewer works east of the Mill Street Sewage Pumping Station during the week of November 24. A temporary sanitary sewer bypass is scheduled to be completed on Tuesday, November 25. This will require sewage to be hauled via tanker truck from the Mill Street Pumping Station to the Thornbury Wastewater Treatment Plant throughout the day. Later in the week, Arnott plans to complete watermain connections at McAuley Street and Mill Street. This work will require some temporary water outages. Impacted properties will receive written notice at least 48 hours in advance of planned outages.
November 20, 2025 - Update on tree removal timelines
Arnott Construction has completed installation of tree protection fencing throughout the project area. Their subcontractor is expected to be on site beginning Thursday, December 4 to begin tree removals required for road reconstruction and forcemain installation.
Tree removals for service lateral installations will be completed in the spring of 2026. This will allow the Town, contractor, consultant and property owners to review the service lateral locations to see if any adjustments could be made to preserve additional trees.
Please Note: The Committee of the Whole meeting scheduled for December 9 has been rescheduled to Monday, December 15 due to a lack of Council quorum. The information in the Staff Reports section of this page has been updated to reflect the change.
A Staff Report is scheduled to be presented to Committee of the Whole on Tuesday, December 9. The report is being presented to request a construction budget increase of $19 million to support the remaining untendered work within the Craigleith Main Lift Station, Mill Street Sewage Pumping Station and Bay Street East Reconstruction project. More details can be found in the Staff Reports & Council Decisions section of this page.
View Staff Reports
An Arborist has attended to the site to mark trees for removal based on the latest design and Arborist Report. Trees that need to be removed to allow for the road reconstruction and installation of the forcemain were marked earlier this summer based on the drawings at the time. The latest markings reflect the current design and Arborist Report.
The Town's contractor plans to complete removals in two phases. The first phase will be completed this fall and will include trees that need to be removed for the road reconstruction and forcemain installation. The second phase will be completed in the spring of 2026 and will include trees that need to be removed for service lateral installations. This will allow the Town, contractor, consultant and property owners to review the service lateral locations to see if any adjustments could be made to preserve additional trees.
View Documents
The Town has issued the Construction Notice for the Bay Street East Reconstruction Project. Arnott Construction is expected to mobilize to the site to begin preliminary work this week.
View Construction Notice
GeoGuard Innovations has also provided a digital copy of their Pre-Construction Condition Survey notice to supplement the hand-delivered notices. This voluntary service is being offered to properties within the immediate area of the planned construction zone.
View Condition Survey Notice
Arnott Construction is planning to start preliminary work the week of November 3. This will include excavating some test pits between Mill Street and McAuley Street to measure groundwater levels. Local traffic only will be permitted on Bay Street East between Mill and McAuley while this work is being completed. All other traffic is asked to divert around the area via Cottage Avenue.
Arnott has also contracted GeoGuard Innovations (GGI) to complete pre-construction condition surveys of properties within the project boundaries. Surveys will be conducted at the request of residents. Notices with booking information are expected to be delivered to properties before the end of this week.
Arnott Construction Ltd. has been awarded the construction contract for the Bay Street East Reconstruction project. Arnott plans to deploy crews to the site and begin work in early November. Utility work is currently underway on Bay Street between Elgin and Grey. Following the relocation of natural gas, Rogers and hydro utilities, Arnott's first tasks will be to install tree protection fencing, along with silt and erosion control measures. Trees slated for removal will be marked again by the Arborist and by EPCOR. Arnott will then remove the required trees within the project limits. It is expected that Arnott will start the underground work at the Mill Street Sewage Pumping Station and work east along Bay Street towards McAuley Street. A detailed Construction Notice with more information on impacts to the residents is being compiled and will be posted on the project web page and mailed to affected residents within the next week.
Over the next several weeks, third-party utilities including Rogers, EPCOR and Enbridge will be completing utility relocation work on Bay Street East between Elgin Street and Grey Street. Enbridge has already mobilized and begun relocation of the natural gas main. The Town is in the final stages of awarding the reconstruction contract. Once the contract has been officially awarded, the contractor will provide the Town with their preliminary schedule for the project and notices will be sent out to residents.
Please Note: At the request of multiple pre-qualified contractors, the tender deadline has been extended to October 2, 2025.
The construction tender for the Bay Street East Reconstruction project is now open on the Town's Bids and Tenders website. Bids will be accepted until September 11, 2025. Once a contractor has been retained, they will provide a more detailed schedule for the work and the Town will prepare and distribute a construction newsletter.
Contractors will be working on Bay Street East beginning July 30 to install new hydro poles and lines on behalf of EPCOR. Work will be happening in two primary locations: Bay Street East from the dead end at the Beaver River to the Elgin Street North intersection, and at the Bay Street East and Grey Street North intersection. The work is expected to take approximately 4 weeks. Temporary lane restrictions will be in place while work is being completed.
An arborist is scheduled to be onsite at Bay Street East within the next week. They will be gathering information to finalize the Arborist Report for the construction tender, and to mark trees that will need to be removed to allow for the reconstruction of the road and municipal services. Tree removals are not planned until after mid-August, however some trimming and removals will be required sooner to allow for the relocation of hydro infrastructure by EPCOR.
Contractors will be working on Bay Street East beginning May 26 to relocate natural gas lines on behalf of Enbridge. Work will be happening in two primary locations: Bay Street East from Mill Street to McAuley Street, and from 109-134 Bay Street East. The work is expected to take 3-4 weeks. Following completion of work on Bay Street, the contractor will complete an additional relocation on Grey Street South from Highway 26 to the Thornbury Wastewater Treatment Plant. Temporary lane restrictions will be in place while work is being completed.
Prequalification of contractors for the Bay Street East Reconstruction project closed on Thursday, April 10. The Town will be posting the final construction tender in the coming weeks, and is looking to award and begin construction in July.
The work will be phased over two years. The reconstruction of Grey Street from Bay Street to the Thornbury Wastewater Treatment Plant would be completed first in 2025, followed by the reconstruction of Bay Street East from Mill Street to Elgin Street. The underground work on Bay Street East from Elgin Street to Grey Street is anticipated to begin in the spring of 2026. However, tree removals and utility relocations are expected to occur throughout the project area this summer. Once a contractor is retained, they will provide a more detailed schedule and the Town will send out a construction newsletter and ongoing updates will be posted to the project web page as information becomes available.
Staff Report OPS.25.004 is scheduled to be presented to Committee of the Whole on Tuesday, February 4, 2025. The report provides a summary of the Public Information Centre held on December 17, 2024, and seeks Council direction to proceed to final design, tender and construction based on the previously approved road cross sections. More details are available in the Staff Reports section this page.
View Staff Reports
December 18, 2024 - Public Information Centre #2 Summary
The presentation deck and recording of the Public Information Centre held on December 17, 2024 are now available to view in the Public Meetings & Information Centres section below.
The Public Information Centre provided an opportunity for attendees to review and ask questions about the 60% design. An overview was also provided regarding the next steps in the project. A follow-up Staff Report is expected to be taken to Committee of the Whole and Council in early February of 2025. Comments and questions can be sent at any time to the Town's Project Manager at sricpc@thebluemountains.ca. All comments received prior to Monday, January 13 will be included in an attachment along with the follow-up Staff Report.
November 26, 2024 - Notice of Public Information Centre #2
The Town has scheduled Public Information Centre (PIC) #2 for the Bay Street East Reconstruction project. The PIC will be held virtually on Tuesday, December 17, 2024 beginning at 5:00 p.m. The meeting will include a public comment and question period. All those interested in the project are invited to attend. Pre-registration is required.
View Notice
November 12, 2024 - Upcoming infrastructure locate work
The Town would like to advise that a contractor is scheduled to complete locates of existing Town infrastructure on Grey Street and Bay Street East utilizing a hydrovac truck on Wednesday, November 13. This work will take place mostly in the boulevard, but may involve some temporary lane restrictions. Access will be maintained at all times for emergency vehicles.
October 23, 2024 - Staff Report for approval of HEWSF grant
Staff Report CSOPS.24.078 is scheduled to be presented to Committee of the Whole on Tuesday, October 29, 2024. The report is seeking Council authorization for the Mayor and Clerk to execute the necessary agreements regarding the Housing-Enabling Water Systems Funding grant for the Craigleith Main Sewage Lift Station, Mill Street Pumping Station and Bay Street Reconstruction. More details are available in the Staff Reports section this page.
View Staff Reports
September 23, 2024 - The Blue Mountains receives $25.3M in Infrastructure Funding from the Ontario Government
Brian Saunderson, MPP for Simcoe-Grey announced today that the Ontario government is investing $25,397,523.99 to enable the construction of new homes in the Town of the Blue Mountains. The funding is being delivered through the Housing-Enabling Water Systems Fund, which helps municipalities develop, repair, rehabilitate and expand drinking water, wastewater and stormwater infrastructure.
This funding has been awarded for upgrades to the Craigleith Sewage Lift Station and Mill Street Sewage Pump Station, including the installation of a new sanitary forcemain between the Mill Street Sewage Pump Station and the Thornbury Wastewater Treatment Plant. This project will significantly increase the Town's wastewater storage and pumping capacity, supporting more than 2,000 new housing units. More details can be found in the MPP's Media Release.
View Media Release
July 19, 2024 - Council decision on design direction
Council pulled Staff Report CSOPS.24.031 for further discussion at their meeting on Monday, July 15. Following discussions with staff, Council provided direction to proceed with the preliminary design of a one-way street cross section for Bay Street East and with a Town standard local urban cross section for Grey Street. More details can be found in the Staff Reports section on this page.
View Staff Reports
July 3, 2024 - Presentation of Public Information Centre #1 Follow-up Staff Report
Staff Report CSOPS.24.031 was presented to Committee of the Whole on Tuesday, July 2, 2024. The report presented a summary of the public feedback that was heard through the first Public Information Centre, and requested Council direction to select a cross-section to allow the project team to continue with the design. More details and updates on this report can be found in the Staff Reports section on this page.
View Staff Reports
April 19, 2024 - Public Information Centre #1 Summary
The presentation deck and recording of the Public Information Centre held on April 18, 2024 are now available to view in the Public Meetings & Information Centres section below.
The Public Information Centre provided an opportunity for attendees to review the project background including the alternative alignments that were evaluated for the forcemain, along with the preliminary design options for Bay Street East. Members of the public are encouraged to share their preferences and feedback regarding the design with the Town's Project Manager by May 3, 2024. These comments will be included in the follow-up Staff Report seeking direction from Town Council. Comments can be sent to sricpc@thebluemountains.ca.
Further updates will be expected when the project team is scheduled to present the follow-up Staff Report regarding the meeting to Committee of the Whole.
March 27, 2024 - Notice of Public Information Centre #1
The Town has finalized the date for the first Public Information Centre (PIC) regarding the Bay Street East Reconstruction project. This PIC will be held virtually on Thursday, April 18, 2024 beginning at 5:00 p.m. to gather input from stakeholders and residents. The meeting will include a public comment and question period. All those interested in the project are invited to attend. Pre-registration is required.
View Notice
February 2, 2024 - Design work advancing
The design for the Bay Street East Reconstruction project is advancing well. The Town's consultant is currently working with a third party to provide renderings to better illustrate the various design options that will be presented for public feedback at the first Public Information Centre. This Public Information Centre is now anticipated to be scheduled for March. The Town will send out notices via mail and email once the date has been finalized.
December 6, 2023 - Neighbourhood Meeting follow-up
Town staff and the Town's engineering consultant, WT Infrastructure, met with local residents on Saturday, December 2 at Bayview Park. The Town's project team was able to illustrate some of the challenges they face based on existing conditions, and residents were able to share their concerns and thoughts on different elements of the project including active transportation options, impacts to trees, traffic calming measures, road alignments and drainage and stormwater management.
The project team will consider all feedback as the preliminary design evolves, along with regulatory requirements, the Town's Official Plan, Transportation Master Plan and Engineering Standards. The first of two planned Public Information Centres is expected to be held in early 2024.
November 10, 2023 - Notice of Neighbourhood Meeting
The Town has chosen a date for a Neighbourhood Meeting regarding the Bay Street East Reconstruction project. This event will be held on Saturday, December 2, 2023 from 10:00 a.m. to 12:00 p.m. at the Bayview Park Pavilion to gather input from stakeholders and residents. All those interested in the project are invited to attend.
View Notice of Meeting
August 15, 2023 - Addition of engineering for Bay Street Reconstruction
Staff Report CSOPS.23.044 was presented to Committee of the Whole seeking approval to add the engineering for the full reconstruction of Bay Street East from Mill Street to Grey Street to the project budget, along with a number of other recommendations. Committee of the Whole voted in favour of the proposal. The decision will be confirmed at the next Town Council meeting on August 28.
View Staff Reports
April 14, 2023 - Request for engineering budget increase
Staff Report CSOPS.23.019 was presented to Committee of the Whole seeking Council approval to increase the engineering budget from $2,000,000 to $2,200,000. The bids received for engineering services exceeded the previously approved budget amount, which has prompted the request.
View Staff Reports
May 3, 2022 - Cancellation of initial project and creation of new project
Staff Report CSOPS.22.041 was presented to Committee of the Whole. The report asked that Town Council approve the cancellation of the "Craigleith Main Sewage Lift Station Upgrades" project that was included in the 2021 Town Budget, and approve the creation of a new project titled "Mill Street Sewage Lift Station and Craigleith Main Sewage Lift Station Upgrades" along with an associated budget.
View Staff Reports

Staff Reports & Council Decisions

March 17, 2026 - Request for temporary relief from Noise By-law for Grey Street work

Staff Report OPS.26.015 is scheduled to be presented to Committee of the Whole on Tuesday, March 17, 2026. The report requests Council approval for temporary relief from the Town's Noise By-law to allow for the completion of work at the intersection of Grey Street and Highway 26.

Staff have prepared a plan which would see the Town's contractor work 24 hours a day for a period of four days in May to complete the installation of the forcemain and outfall across Highway 26. The Contractor has estimated that if the work was completed during normal construction hours it would take approximately 2-4 weeks. By working 24 hours a day, the work can be completed in four days, avoiding extended traffic congestion on Highway 26 and minimizing the impact on residents.

View Report OPS.26.015

Staff Report OPS.26.013 was presented to Committee of the Whole on Tuesday, February 24, 2026. This report provides the fulsome financial update requested by Council at the December 15, 2025, Special Committee of the Whole, responds to the Council resolution passed at the February 3, 2026, Committee of the Whole, and serves as a follow-up to Staff Report OPS.26.008 dated February 3, 2026.
Committee received the report and directed staff to report back to Council with updated estimates and financial projections as they move through all capital projects phases, estimate milestones and engineering stages. Committee also crafted and passed a second motion directing staff to provide a report including all documentation associated with the decision for the second forcemain to be routed along Bay Street East as illustrated on page 179 of the 2023 approved budget.
Presentation of the report begins at the 2:16:56 mark of the meeting recording.
View Meeting Recording
Staff Report OPS.26.008 was presented to Committee of the Whole on Tuesday, February 3. The report provides a fulsome financial update and overview of current project financials as requested by Council. The report also outlines the reporting framework that will be used going forward for quarterly project updates through to project completion. Committee received the report and directed staff to provide financial updates for the duration of the project starting in May 2022. Council also directed staff to:
- Itemize the original and additional contingency dates of request and approval
- Provide the detailed financial reporting and project costs starting with the 100% engineering design of the Craigleith Sewage Lift Station and Bay-Grey Street linear works up to the award of the construction tenders
- Provide the amount remaining in the bundled project total when the construction tenders were awarded
- Provide detailed information regarding the estimates on the Mill Street Pumping Station Upgrades
Presentation of the report begins at the 0:37:55 mark of the meeting recording.
Staff Report ADM.26.015 was also presented to Committee of the Whole on February 3. The report provides an investigation into the budget increases for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station and Bay-Grey Street Reconstruction projects. Committee received the report and directed the CAO to address the following points in the next investigative report:
1. What escalation processes will the CAO be considering to ensure that all information (financial, engineering, construction and risk management) regarding capital projects is reported on as early as possible to Council?
2. Further to these processes, how would the CAO incorporate consultation with Council and the public at the real beginning (the thought or identified need) and throughout the projects, as per the example offered about the decision to place the forcemain on Bay Street?
3. Provide the details of the evidence-based decision making process leading to the choice of Bay Street for the forcemain, including but not limited to how they me the bullet points on slide 14 of the Public Information Centre #1 presentation.
4. Answer all of the questions put forward by the Community Matters group in their public comment made at the February 3, 2026 meeting of Committee of the Whole.
5. Explain why the gap occurred between the awareness of the overage in the summer of 2025, and when Senior Management Team became aware in November 2025.
Presentation of the report begins at the 1:57:20 mark of the meeting recording.
View Meeting Recording
Staff Report CFS.26.009 was presented to Committee of the Whole on Monday, January 12 by the Town's Finance Department. The report requests Council direction to proceed with an agreement with MEMAR Value Strategies Inc. to conduct a Value Management study on the Mill Street Sewage Pumping Station, with funding through the approved project engineering budget. The Value Management study is intended to reduce capital risk, improve lifecycle outcomes and strengthen Council’s confidence in advancing the Mill Street Sewage Pumping Station Upgrades to tender. Committee voted in favour of proceeding with the exercise, and this motion was adopted by Council at their meeting on Monday, January 26.
Presentation of the report begins at the 2:11:35 mark of the meeting recording.
View Meeting Recording
Staff Report OPS.25.049 was presented to Committee of the Whole on Monday, December 15, along with a special presentation by the Town's Director of Operations. The report requested a construction budget increase of $19 million to support the remaining untendered work within the Craigleith Main Lift Station, Mill Street Sewage Pumping Station and Bay Street East Reconstruction project. Based on early estimates, the original approved budget for the three aspects of the project was $34.79 million. As the design and scope evolved, the Town's engineering consultant provided a revised estimate of $53.56 million. Construction contracts for the expansion of the Craigleith Main Lift Station and the reconstruction of Bay Street and Grey Street have already been awarded. The remaining untendered work primarily includes the expansion and upgrading of the Mill Street Sewage Pumping Station. Moving forward with this work is critical as it will significantly reduce the risk of basement flooding, help prevent sewage bypasses to the Beaver River and Georgian Bay, and strengthen the Town’s ability to manage increasingly intense rainfall events. The Town has been awarded $25.3 million for the project through the province's Housing-Enabling Water Systems Fund, and must complete the work by March 31, 2027 to be eligible to receive the full funding.
Committee voted to approve the additional funding and passed the following motions:
THAT Council receive Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”;
AND WHEREAS Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works” does not meet Council expectations of rigorous project management and fiscal responsibility, resulting in a failure of demonstration of:
POL.COR.24.05 Accountability and Transparency of Town Actions to the following Public Policies and Town Values,
Accountability” means the Town of The Blue Mountains and its elected Council’s commitment, undertaking and duty to answer to those it serves for its actions, inactions and general state of affairs.
Transparency” means the Corporation and its Council’s commitment and undertaking to be open to those it serves in the execution of its offices, duties and activities and its commitment to public participation and input in its decisions and activities
AND Town Values which where the governing principles that guide an organization on a daily basis, the Town’s values have been developed through collaboration with Council and Staff to work towards the common goal of striving to be the best local government for the residents it serves.
Integrity: Being honest, consistent and fair in all we do;
AND Policy, POL.COR.25.02 Page 7 of 22 Employee Code of Conduct
2. Integrity a) Always act with integrity and in a manner that will bear the closest public scrutiny
WHEREAS Council recognizes that the Town will have to move forward with the project or bear the consequences of the loss of an additional $25m in public funding;
WHEREAS Council approves an increase of $19,000,000 to the project budget, as referenced in staff report OPS.25.049;
AND THAT as a result of the above approval, Council directs staff to provide a “what/ when/where” investigative report, no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting, outlining consequences of staff actions as well as recommendations for corrective measures that strongly emphasize accountability and prevention so no event of this nature “ever happens again”;
AND THAT the above requested report also brings forward the impact of the additional $19m requirement on the revised 2026 capital plan;
AND THAT Council direct staff to bring forward, in an Excel format, the total amount in each reserve, identifying the amounts which have been allocated by project and the amounts which are available for other uses, including sources of funding, reserve strategy and long term financial projections for all capital projects while outlining how the town will responsibly absorb this overrun with a full understanding that this plan will not impact the future tax levy;
AND THAT Council directs staff to report on any variance to the Bay Street Reconstruction project budget and all related works at the next available Committee of the Whole meeting until completion. The staff report is to include: an explanation, recommendations and options for savings from other capital projects to fund the overage before additions to the original budget will be considered;
AND THAT Council directs staff to report out on the Bay Street Reconstruction financials and any related works throughout the project delivery time period with the first report coming no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting and quarterly from this date onwards until the completion of the project. Although the projects were combined updates are to be provided at both the whole and individual tendered levels;
AND THAT Council directs staff to undertake a review of the Capital Project department’s reporting processes and procedures back to the Committee of the Whole meeting on March 17, 2026, at the latest;
AND that this report also provides recommendations for revised procedural controls that will ensure timely, accountable communications with Council and the public on all financial pressures associated with major capital projects;
AND THAT Council directs staff to bring the identified eligible development charges for the Bay Street East Reconstruction project, and any related works, as they are received against the $19m annually until the amount is made whole.
THAT, further to Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”, Council directs staff to bring forward an updated Budget Policy that establishes appropriate variance reporting thresholds, including both percentage and minimum dollar-value triggers, to ensure material variances are reported to Council in a timely and meaningful way;
AND that the Budget Policy be brought no later than the Committee of the Whole meeting of March 16, 2026;
AND THAT Council directs staff to provide a further staff report to the March 16, 2026 Committee of the Whole Meeting on how certainty in future projects will be managed if they are based on a 30% engineering estimate, and how they are included in a grant application and capital budgets, given the overruns recently experienced in the Bay Street project;
AND THAT Council direct staff to address tender approval thresholds and delegated authority through the upcoming Purchasing Policy update, including enhanced Finance sign-off and reporting requirements for major procurements;
AND that the Purchasing Policy be brought no later than the Committee of the Whole meeting of March 16, 2026;
AND THAT Council direct staff not to combine projects until a policy outlining best practices for project coupling, stacking and or bundling has been approved.
AND THAT Council direct staff to bring forward the reserve policies to the Committee of the Whole meeting no later than the meeting on March 16, 2026.
This motion was adopted by Council at their meeting on Tuesday, December 16. Presentation of the Staff Report begins at the 2:20:10 point of the meeting recording.
View Meeting Recording
Staff Report OPS.25.004 was presented to Committee of the Whole on Tuesday, February 4, 2025. The report provided a summary of the Public Information Centre held on December 17, 2024, including responses and additional background on the questions asked during the Public Information Centre. The report sought Council direction to proceed to final design, tender and construction based on the previously approved road cross sections which are:
- Bay Street East to include sanitary forcemain, sanitary sewer, storm sewer and watermain by undertaking a preliminary design of a one-way street cross section with an alignment which minimizes the impact to the existing streetscape while not compromising safety or the needed infrastructure. The design is to include:
  Stormwater bike safe grates/basins within the asphalt and/or semi-mountable curb
  No sidewalks, multi-use trail, or drainage ditches
- Grey Street beginning south from Bay Street East to Highway 26 in a complimentary manner to Bay Street East cross-section from Highway 26 to the Wastewater Treatment Plant with restoration to the Town standard local urban 20m ROW with no parking cross-section with 7.5 metre asphalt width and 2.7 metre multi-use trail including the installation of the outfall sanitary forcemain, storm sewer and watermain
Staff also requested a $150,000 increase to the engineering contingency budget to allow for additional communications requested by residents related to tree removal and replanting of trees adjacent parklands and on private property. This includes services of an arborist, landscape architect and designer.
These recommendations were approved by Committee of the Whole, and the direction was adopted by Council at their meeting on Tuesday, February 18, 2025. Presentation of the report to Committee of the Whole begins at the 54:40 mark of the meeting recording.
View Meeting Recording
Staff Report CSOPS.24.078 was presented to Committee of the Whole on Tuesday, October 29, 2024. The report requested Council authorization for the Mayor and Clerk to execute the necessary agreements regarding the Housing-Enabling Water Systems Funding grant for the Craigleith Main Sewage Lift Station, Mill Street Pumping Station and Forcemain. The Town of The Blue Mountains has been successful in receiving $25,397,523.99 from the Ontario Ministry of Infrastructure for this project. Committee voted in favour of the recommendation. In a subsequent motion, Committee requested that the Town Clerk review the release of the Town's application for the HEWSF grant to Council members prior to their meeting on November 12.
Presentation of the report begins at the 1:37:20 mark of the meeting recording.
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The report was pulled for further discussion at the Special Meeting of Council on November 25, 2024. Upon review and following discussion with staff, Council voted to confirm the Committee motion.
Review of the Committee motion begins at the 40:35 mark of the Council meeting recording.
View Council Meeting Recording
Staff Report CSOPS.24.031 was presented to the Committee of the Whole on Tuesday, July 2, 2024. The report provided a summary of the feedback received through the first Public Information Centre, and requested direction to proceed with the design of Bay Street and Grey Street including sanitary forcemain, sanitary sewer, storm sewer and watermain with restoration to the Town Standard Local Urban 20m Right of Way with No Parking cross-section with 7.5m asphalt width, and 2.7m multiuse trail. Following a thorough discussion, Committee voted 6-0 in favour of a motion that directed staff to provide another Staff Report with the following information:
1. A complete review of the four options offered for the forcemain alignment presented in the Public Information Centre and the options proposed by the members of the community at the July 2, 2024 Committee of the Whole meeting in response to CSOPS.24.031, including costs for each of these options.
2. Further information on the costs, savings, and cross-section of the one-way street, two-way street and centering options, plus consideration of an additional option of status quo amenities (no sidewalks, no multi-use trail and no curb).
3. Cross-section drawing of pipe placement with corresponding measurements (horizontal and vertical).
Presentation of the report to Committee of the Whole begins at the 2:10:30 mark of the meeting recording.
View Committee Meeting Recording
Council pulled the report and Committee motion for further discussion at their meeting on Monday, July 15. Following a thorough discussion, Council voted against the motion directing staff to provide an additional staff report with a complete review, including costs, of the forcemain alignment options. In a separate decision, Council voted to direct staff to proceed with:
- The design of Bay Street East including sanitary forcemain, sanitary sewer, storm sewer and watermain by undertaking a preliminary design of a one-way street cross section with an alignment which minimizes the impact to the existing streetscape while not compromising safety or the needed infrastructure. The preliminary design is to include:
  Stormwater bike safe grates/basins within the asphalt and/or semi-mountable curb
  No sidewalks, multi-use trail, or drainage ditches
- The design of Grey Street beginning south from Bay Street East to Highway 26 in a complimentary manner to Bay Street East cross-section from Highway 26 to the Wastewater Treatment Plant with restoration to the Town standard local urban 20m ROW with no parking cross-section with 7.5 metre asphalt width and 2.7 metre multi-use trail including the installation of the outfall sanitary forcemain, storm sewer and watermain
Review of the report by Council begins at the 4:27:40 mark of the meeting recording.
View Council Meeting Recording
Staff Report CSOPS.23.044 was presented to Committee of the Whole on Tuesday, August 15. The report requested Council approval for the following items:
- Addition of engineering for the full reconstruction of Bay Street from Mill Street to Grey Street to a full urban cross section.
- Increase the engineering services budgets for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station, Mill Street Forcemain and Thornbury Wastewater Treatment Plant (TWWTP) Outfall.
- Initiate negotiations with WT Infrastructure to complete the engineering for the full reconstruction of Bay Street from Mill Street to Grey Street, and with IBI Arcadis to complete the engineering for the TWWTP Outfall.
Committee of the Whole voted 6-0 in favour of the recommendations. This was adopted by Council at their meeting on August 28.
Committee discussion of the report begins at the 1:11:00 mark of the meeting recording.
View Meeting Recording
Staff Report CSOPS.23.019 was presented at a Special Meeting of Council on April 14. The report requested Council approval to increase the engineering services budget for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station and Mill Street Forcemain projects. Council voted 6-0 in favour of the recommendations.
Council discussion of the report begins at the 51:20 mark of the meeting recording.
View Meeting Recording
Staff Report CSOPS.22.041 was presented at a Special Committee of the Whole meeting on May 3. The report asked that Town Council approve the cancellation of the "Craigleith Main Sewage Lift Station Upgrades" project that was included in the 2021 Town Budget, and approve the creation of a new project titled "Mill Street Sewage Lift Station and Craigleith Main Sewage Lift Station Upgrades." The purpose of combining these projects was to streamline the engineering process. The report also asked Council to approved a budget of $2,000,000 for engineering and contingency, with $1,000,000 coming from the Wastewater Asset Replacement Reserve Fund and $1,000,000 coming from Wastewater Development Charges. Committee voted 3-3 regarding the recommendations. The report was pulled for further discussion at the May 24 Council meeting where staff provided further background information about the projects. Council voted 5-1 in favour of the recommendations.
Discussion of the report at the Committee meeting begins at the 4:59:30 mark of the recording.
View May 3 Committee Meeting Recording
Discussion of the report at the Council meeting begins at the 3:24:00 mark of the recording.
View May 24 Council Meeting Recording

Public Consultation

Public Information Centre #2 - December 17, 2024

The second Public Information Centre was held to review and answer questions about the 60% design, and to provide an overview of the next steps in the project.

View Meeting Recording

View Presentation Deck

View Notice of PIC

Map of Project Area

Quarterly Progress Reports

Q4 2025	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Budget revised Notes: Council approved an additional $19 million for untendered work which includes an expansion and upgrade of the Mill Street Sewage Pumping Station.

Q4 2025

Project Scope: Within scope
Project Schedule: Within schedule
Project Budget: Budget revised

Notes: Council approved an additional $19 million for untendered work which includes an expansion and upgrade of the Mill Street Sewage Pumping Station.

Past Progress Reports

Q3 2025	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within revised budget
Q2 2025	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within revised budget
Q1 2025	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Budget increased Notes: Council voted to increase engineering contingency budget by $150,000 to allow for more communication regarding tree removal and replanting.
Q4 2024	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within budget
Q3 2024	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within budget
Q2 2024	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within budget
Q1 2024	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within budget
Q4 2023	Project Scope: Within scope Project Schedule: Within schedule Project Budget: Within budget

Frequently Asked Questions

The Town has been awarded $25.3 million in funding through the HEWSF for the “Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station and Bay Street Forcemain” project. Staff began preparing the grant application in February of 2024 to meet the submission deadline of April 19, 2024. At that time, this project had been approved by Council in August 2023 through Staff Report CSOPS.23.044 and included:
- Upgrades to increase capacity at the Mill Street Sewage Pumping Station
- Upgrades to increase capacity at the Craigleith Sewage Lift Station
- Installation of the sanitary forcemain along Bay Street and Grey Street
- Replacement of watermain and sanitary sewers on Bay Street
- Addition of stormwater sewers on Bay Street
- Elimination of the Elgin Street Sewage Pumping Station
- Reconstruction of Bay Street and Grey Street
This funding offers a vital opportunity to modernize the underground infrastructure on Bay Street and Grey Street, rebuild the roads for the next century and ensure the ongoing safety and functionality of the Town’s wastewater and drinking water systems.
The Town has been informed that if there are any changes to the scope of the project outlined in the Town’s application – including the relocation of the forcemain from the alignment identified in the grant application – the province would be required to review and reassess whether eligibility for the funding would be maintained. Additionally, the HEWSF states that all projects must be completed by March 31, 2027 to remain eligible to receive the full funding. Failure to meet the requirements of the HEWSF will result in the project funding falling back to Reserve Funds and Development Charges.
The latest direction from Council came on February 18, 2025 in response to Staff Report OPS.25.004. At this time, Council voted directing staff to proceed to final design, tender and construction with:
The design of Bay Street East including sanitary forcemain, sanitary sewer, storm sewer and watermain by undertaking a preliminary design of a one-way street cross section with an alignment which minimizes the impact to the existing streetscape while not compromising safety or the needed infrastructure. The preliminary design is to include:
- Bike-safe stormwater grates/basins within the asphalt and/or semi-mountable curb
- No sidewalks, no multi-use trail, or drainage ditches
The design of Grey Street beginning south from Bay Street East to Highway 26 in a complimentary manner to Bay Street East cross-section from Highway 26 to the Wastewater Treatment Plant with restoration to the Town standard local urban 20m right-of-way with no parking permitted, and a road cross-section with 7.5 metre asphalt width and 2.7 metre multi-use trail including the installation of the outfall, sanitary forcemain, storm sewer and watermain
Staff have been given clear direction from Council to proceed with a design that will minimize impact on the existing streetscape. In particular, the tennis courts and pavilion at Bayview Park will not be impacted during the construction or as a result of construction.
Staff are committed to ensuring the preservation of Bayview Park as much as possible while accommodating the necessary infrastructure upgrades.
Images provided in Public Information Centre #1 included an illustration of the route which showed the forcemain passing under the tennis courts and the pavilion. This was presented as a high-level schematic for illustration purposes, and should not be considered as detailed design. All infrastructure – including the forcemain – can be installed within the Town-owned 20 metre right-of-way and will not impact the tennis courts or the pavilion. Some tree removals will be required along Bayview Park within the Town’s right-of-way, however these are expected to be offset through replanting at the end of the project.
Town staff initially evaluated several alternative routes for the forcemain. Bay Street East and Grey Street was chosen as the preferred route, and was approved by Council through Staff Report CSOPS.23.044 on August 15, 2023. An overview of the routes considered was provided for information purposes at Public Information Centre #1 (beginning at the 15:00 mark of the meeting recording) on April 18, 2024. The route along Bay Street East and Grey Street was chosen for the following reasons:
- Redundancy: The majority of the alignment provides a separate route from the existing forcemain, which is a key design requirement for redundancy.
- Access: Installation within the Town’s right-of-way ensures long-term access for maintenance, repairs, and eventual replacement.
- Opportunities for Project Efficiency: The existing watermain and sanitary sewer on Bay Street East are at the end of their useful lives and need replacement. Grey Street also needs to be reconstructed for the installation of the new outfall from the Thornbury Wastewater Treatment Plant. Completing this work at the same time as the forcemain installation is expected to result in significant cost savings to the Town and taxpayers.
- Future Upgrades: The alignment is expected to allow for the elimination of the undersized Elgin Street Pumping Station. If this facility is not eliminated through the forcemain installation, it will require costly upgrades or replacement in the near future.
- Drainage and Road Upgrades: The project will provide road and drainage upgrades to extend the lifespan of the roadway.
Bay Street East was identified through the Town’s recently completed Transportation Master Plan as an area with an opportunity for active transportation infrastructure to be added. Therefore, preliminary recommendations called for a full urban cross section in this area to align with the Town’s updated Engineering Standards. This would have seen the addition of sidewalks and streetlights to enhance pedestrian safety, along with improved stormwater management facilities to protect Georgian Bay.
At their meeting on July 15, 2024, Council voted to eliminate the dedicated pedestrian facilities from the design scope, and directed staff to proceed with a one-way design for the street.
View Council Decisions